General Office of the State Council, Circular on Transmitting the National Development and Reform Commission, Ministry of Commerce, People's Bank of China and Ministry of Foreign Affairs, Guiding Opinions on Further Guiding and Regulating the Orientation of Outbound Investment
国务院办公厅转发国家发展改革委、商务部、人民银行、外交部关于进一步引导和规范境外投资方向指导意见的通知
March 30, 2018 | BY
Susan Mok &Encouraged, restricted and prohibited types of outbound investment specified.
Issued: August 4 2017
Main contents: Strong domestic enterprises are encouraged to engage in outbound investment that is conducive to the Belt and Road Initiative, export of superior production capacity, upgrading the R&D in China and complementing the energy and resource shortages in China (Article 3).
On the other hand, domestic enterprises are restricted in engaging in outbound investment that is incompatible with the state's foreign relations policy of peaceful development, strategy of mutual benefit, win-win and opening, or macro control policies, including:
(1) engaging in outbound investment to sensitive countries or regions with which China does not have diplomatic relations, that are in turmoil or that are required to be restricted pursuant to the multi- or bi-lateral treaties or agreements to which China is a signatory;
(2) outbound investment in real estate, hotels, multiplexes, the leisure industry, sports clubs, etc.;
(3) establishment offshore of equity investment funds or investment platforms that have no specific industrial project;
(4) engaging in outbound investment using obsolete production equipment that does not satisfy the requirements of the technical standards of the investment target country; or
(5) outbound investment that does not satisfy the environmental protection, energy consumption or safety standards of the investment target country.
Of the foregoing, the first three types are subject to the approval of the competent outbound investment authority (Article 4).
Domestic enterprises are prohibited from participating in outbound investment that jeopardizes or could jeopardize state interests or national security, including:
(1) outbound investment that involves the export without state approval of core military technologies or products;
(2) outbound investment using technologies, processes or products the export of which is prohibited by the state;
(3) outbound investment in the gaming industry, sex industry, etc.;
(4) outbound investment that is prohibited as specified in international treaties to which China is a signatory or member; or
(5) other outbound investment that jeopardizes or could jeopardize state interests or national security (Article 5).
clp reference:2100/17.08.04 issued:2017-08-04This premium content is reserved for
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